A joint venture between Locale Advisors and Long Wharf Capital has sold The Yard, a 60,518-square-foot repurposed creative-office building at 5825 Oberlin Drive in the Sorrento Mesa submarket of San Diego, to TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), according to a release from a representative of Cushman & Wakefield (C&W). The release says the sale price was $24.825 million, equating to $410 per square foot.
TH Realty has been an active buyer in the San Diego market lately. As SoCal Real Estate reported last week, the firm has purchased 10222 Barnes Canyon, an 81,976-square-foot, two-story, class-A life-sciences building in the Sorrento Mesa submarket of San Diego, from Bollert | LeBeau for $43.2 million, according to a release from a representative of JLL. The statements says the property is fully leased to Invivoscribe Technologies and Crinetics Pharmaceuticals.
Situated on over 4 acres, The Yard was originally developed in 1985 and underwent a significant upgrade and reconfiguration in 2017, the statement says. The asset features EV stations and a tenant electric-bicycle program and is walkable to amenities and public transportation. It was approximately 90 percent leased to a diverse mix of tenants at the time of sale.
The release says executive managing director Rick Reeder and executive director Brad Tecca with C&W’s Capital Markets in San Diego represented the seller, and Bill Cavanagh and Mike Novkov of the firm also provided local market-expert advisory.
Reeder is quoted in the release as saying, “The Yard is an adaptive re-use of a single-story building repurposed into a multi-tenant creative project with design elements focusing on employee experience. Integrating technology and nature, the project’s biophilic design delivers natural light to indoor workspace with added oversized glass roll-up doors to enhance connectivity to an outdoor environment that embraces San Diego’s idyllic climate and lifestyle, which are highly unique to the region.”
Tecca adds that the existing creative improvements at The Yard were “purposely designed to be readily reusable for future tenants and limit re-tenanting capital requirements, resulting in superior bottom-line returns for future ownership …”
Tecca also says the thriving tech hub in Sorrento Mesa has spurred a demand for creative-office space that has surpassed traditional class-A office projects like The Yard. Projects like this are achieving rents and tenant velocity above class-A averages. “We’ve tracked several tenants migrating to creative projects locally.”